Thursday, April 17, 2008

Homes are selling and there is some weakness

My projection of selling 10 homes last week was close. There were 9 homes in contract and a handful of new ones came on the market. What I'm seeing with buyers is an expection that prices should drop. The appearance is that they are dropping but in reality, homes that were overpriced are simply coming back down to earth.

A recent sharp drop in price was at 1084 Parma Way. This is a nice house but they had a $400K price drop from $3.195M to $2.795M. Why? Good question. But I am seeing a few homes where sellers don't have the time or patience and they drop the price on their property substantially to drive a sale.

I've seen this in Atherton a lot lately. A one acre lot in a nice location sold at just under $2M in 12 days when it was priced at $2.2M. Why? Just to get it sold.

This actually hurts the market for sellers and potentially buyers because we really want to maintain a balanced market. If the market is weak on the buy side you might get a deal, but when it comes time to sell your own home to buy the new one, you'll take a hit on that sale. strong demand and reasonable pricing will help keep the balance and be a win-win for everyone.

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